Mid Month Update-December 15, 2017

Can you believe it is already December? As 2017 comes to completion, we at Altus are looking forward to 2018 and another year of outstanding relationships and solid opportunities!

Wishing you and yours the best the Christmas season.

In the Pipeline:

• We have an accepted LOI on a small 104-unit property in Del City, OK. This will be a nice addition to our portfolio as it is located less than 2 miles from our Cedar Hills complex This will allow the two properties to utilize the same office and maintenance staff. Assuming no issues through due diligence we will likely be raising investor funds for this purchase.
• We continue to review multiple deals throughout a variety of markets. Multiple portfolio opportunities have been brought to us in the last month. A few of them are interesting and LOIs have been submitted.

Current Repositioning Projects:

Norman Portfolio
(340 units, Norman OK)

• We are four months into ownership and the grounds are really starting to look great. Landscaping has been cleaned up and dramatically opened the views from main street abutting the property. As improvements continue this will create amazing drive by marketing opportunities.
• Construction is moving slower than anticipated bit not for lack of trying from the onsite crews. Material delays due to hurricane Harvey have been a major issue.
A substantial portion of the exterior improvements have been completed and we have a total of 7 complete units with another 40 units in the final stages of completion. Winter is a slow leasing season in Norman but the on-site team is working diligently. Several leases have been signed at the pro forma rents.

Village on the Lake
(160 units, Oklahoma City)

• Currently 53% leased, a 4% increase from the previous month.
• Despite winter normally being slow for leasing, leasing at this property is going as quickly as the construction team can provide completed units.

AE Rockwell
(304 units, Oklahoma City)

• HUD loan commitment has been achieved and final loan documents are in progress. This repositioning was extremely successful, the HUD loan terms are the best available in the market, and we look forward to a long successful ownership of this property.

AE Sunset
(98 units, Edmond OK)

• Occupied at 92% A 2% increase from last month.
• Leasing has been slow over the last two months at Sunset We have been working directly with the onsite team to improve occupancy. The refinance process to permanent debt is expected to commence in January when lease up concessions burn off.
• This project is considerably ahead of schedule.
 
Normandy Place
(80 units, Little Rock AR)

• Normandy continues to improve! We are extremely pleased with the performance of the new management company at this property.

Magnolia Apartments
(40 units, Redding CA)

• The property remains 100% occupied.
• Exterior improvements did not begin as planned, finding subcontractors has taken more time than anticipated – however rental increases on lease renewals are now in place and 3 leases have been renewed at our projected proforma rate.

Stabilized Properties (w. activity only):

French Villa
(110 Units, Tulsa OK)

• Currently 94% occupied, 97% leased.
• Construction is ahead of schedule and below budget.
• The onsite office will receive a full renovation, starting in January.
• The refinance to permanent financing through Freddie Mac is just waiting on recordation by the title company and should be done in the next week.

AE Bodega
(11 units, Petaluma)

• 100% occupied.
• The property is under contract for sale, it is scheduled to close the early part of 2018.

Cedar Hills
(124 units, Del City OK)

• Currently 98% occupied, 100% leased.
• Strong kudos to the onsite team. They are substantially outperforming the market.

AE Commerce
(20,000 SF Commercial Space, Rohnert Park)

• This property has been placed back on the market for sale.

AE Three -1500 Farmers Lane
(17,400 SF Commercial Space, Santa Rosa)

• Construction is 100% complete and we received final certificate of occupancy.
• This property is under contract for sale, closing is scheduled for after the first of the new year.

 

Other:

• Lending activity remains elevated from previous years despite the amount of effort being put into our equity projects. Please call our office at 707-932-5887 if you have any interest in either lending or borrowing or would like more information. 
If you have any interest in discussing any of the above opportunities in greater detail, please reply to this email or call our office at (707) 932-5887.  We will gladly add you to our distribution list and/or schedule an appointment to discuss your investing needs further.

Best,

Ali Negus